The rabbit-like mammal that can grow up to 55 cm long, once inhabited two-thirds of Australia's mainland, reports Xinhua news agency.

As a result of habitat loss, bushfires and predation by introduced species, bilby populations now inhabit just 15 per cent of land mass -- mostly in central Australia.

"Unfortunately, over the years, bilby populations have shrunk considerably," Albanese said.

"But we have a very special Easter message here today, a new plan to help protect the bilby."

The government will invest A$5 million ($3 million) in programs to protect the species.

The new plan draws on Indigenous knowledge and research, with First Nations' traditional owners in central Australia enlisted to remove and manage feral species and repair bilby habitats.

Environment Ministers from six of the seven mainland states and territories have signed on to the plan.

Plibersek said that with its pink ears, soft grey coat, and little bouncy feet, the greater bilby is an iconic Australian animal.

"Coming up to Easter, Australia's answer to the Easter Bunny, the greater bilby deserves greater protection," she said.

"In the lead-up to Easter, if you can choose between an Easter bunny and an Easter bilby, make sure you choose the Easter bilby."